EUR/USD Price Analysis: Rebounds from over one-week low, moves back above mid-1.0900s

EUR/USD regains positive traction on Wednesday and snaps a three-day losing streak.
A modest USD downtick lends support ahead of the US macro data and FOMC minutes.
A convincing break below the 50% Fibo. might shift the bias in favour of bearish traders.

Haresh Menghani FXStreet

The EUR/USD pair attracts some buying during the Asian session on Wednesday and for now, seems to have snapped a three-day losing streak to over a one-week low touched the previous day. Spot prices currently trade around the 1.0960 region, up just over 0.15% for the day, and remain at the mercy of the US Dollar (USD) price dynamics.

The USD Index (DXY), which tracks the Greenback against a basket of currencies, erodes a part of Tuesday's strong gains amid some repositioning trade ahead of important US macro data and the crucial FOMC meeting minutes. In the meantime, doubts over early rate cuts by the Federal Reserve (Fed) might hold back traders from placing aggressive bearish bets around the buck and keep a lid on any further gains for the EUR/USD pair.

From a technical perspective, spot prices showed some resilience below the 100-period Simple Moving Average (SMA) on the 4-hour chart and found decent support near the 50% Fibonacci retracement level of the December 11-28 rally. The latter is pegged near the 1.0940 area and should now act as a key pivotal point, which if broken should pave the way for an extension of the pullback from the 1.1135-1.1140 area, or a five-month peak touched last week.

The EUR/USD pair might then weaken below the 200-period SMA on the 4-hour chart, currently around the 1.0920 region, and the 1.0900 mark, towards testing the 61.8% Fibo. level, around the 1.0885-1.0880 zone. Some follow-through selling will be seen as a fresh trigger for bearish traders and drag spot prices further towards the 1.0835-1.0830 intermediate support en route to the 1.0800 round-figure mark and the 1.0765-1.0760 region.

Meanwhile, oscillators on the daily chart – though have been losing traction – are still holding in the positive territory and favour bullish traders. That said, any further intraday move-up is likely to confront some resistance near the 1.0980 area. This is closely followed by the 1.1000 psychological mark, above which the EUR/USD pair could climb to the 1.1040-1.1045 region en route to the 1.1080-1.1085 zone before aiming to reclaim the 1.1100 round figure.

EUR/USD 4-hour chart

Technical levels to watch

EUR/USD

Overview
Today last price	1.096
Today Daily Change	0.0017
Today Daily Change %	0.16
Today daily open	1.0943

Trends
Daily SMA20	1.0937
Daily SMA50	1.0842
Daily SMA100	1.076
Daily SMA200	1.0846

Levels
Previous Daily High	1.1046
Previous Daily Low	1.0941
Previous Weekly High	1.114
Previous Weekly Low	1.1009
Previous Monthly High	1.114
Previous Monthly Low	1.0724
Daily Fibonacci 38.2%	1.0981
Daily Fibonacci 61.8%	1.1006
Daily Pivot Point S1	1.0907
Daily Pivot Point S2	1.0872
Daily Pivot Point S3	1.0802
Daily Pivot Point R1	1.1012
Daily Pivot Point R2	1.1082
Daily Pivot Point R3	1.1117

Author

Haresh Menghani

FXStreet

Haresh Menghani is a detail-oriented professional with 10+ years of extensive experience in analysing the global financial markets.

EUR/USD appears supported by the 200-day SMA, for now

Following an early pullback to multi-week lows near 1.1670, EUR/USD now manages to reclaim the 1.1700 region as the NA session draws to a close on Monday. The steep retracement in spot follows the equally strong move higher in the US Dollar, as investors continue to assess the geopolitical landscape in the wake of the US and Israel attacks on Iran.

GBP/USD hits new yearly lows near 1.3300

GBP/USD adds to the recent bearish tone, approaching to the key 1.3300 support to reach fresh YTD troughs against the backdrop of the robust performance of the US Dollar. Indeed, Cable’s decline comes amid the firm demand for the safe-haven space in the wake of the US and Israel attacks to Iran.

Gold eases some ground, approaches $5,300

Gold now surrenders part of the earlier advance, reshifting its attenton to the $5,300 zone per troy ounce at the beginning of the week. Indeed, the yellow metal’s firm performance appears propped up by incresing geopolitical jitters in the Middle East, which at the same time fuels the demand for the safe-haven space.